I see people on here all the time saying this tool or that model regressed. It used to be better.
There are clearly some pressures to make it worse. Like it's expensive to run. And unbelievably that it's under provisioned somehow.
Could you have looked at early Myspace and declared social media would only get better? By some measures it was already at its peak.
Personally I don't think coding agents will regress significantly as long as there is competitive pressure and independent benchmarks. Regulation is a risk because coding may be equivalent to general reasoning, and that might be limited for political / "safety" reasons.
Social media "regressed" from the point of view of users because the success metric from the network's point of view was value extraction per eyeball-minute. As long as there continue to be strong financial incentives to have the strongest coding model I think we'll see progress.